The business community was cautiously optimistic about Mr Leung's appointment yesterday.
He will leave his position as Asia-Pacific chairman of JP Morgan Chase to take up the "poisoned chalice" of tax reform.
Cheung Kong (Holdings) chairman Li Ka-shing said Mr Leung's appointment was a "good arrangement" as he had many years' experience in the financial sector and was knowledgeable in global finance affairs.
David Li Kwok-po, chairman of the Bank of East Asia, said he believed Mr Leung would abandon his private business ties to serve Hong Kong wholeheartedly.
Sun Hung Kai Properties vice-chairman Thomas Kwok Ping-kwong said Mr Leung was experienced in both the political and business sectors as he was also an Executive Councillor. A banking source close to Mr Leung said: "As an outsider, it's going to be a challenge. There are some who are going to say he is there because he is available, not because of his skill. People, as they enter a job, are often described as not being up to the task . . . but I'm sure history will show he will do a better job than the doomsayers all think."
He said it was likely Mr Leung would be more "ministerial" in his approach.
With the Government's traditional revenue source - land sales - diminishing, the new financial secretary has to find different revenue sources while facing pressure to increase social spending.
Nomura Securities economist William Overholt believes Mr Leung will take a quiet but firm approach. "He brings private sector experience and that is something that has often been lacking," he said. "I think he's proven to have a very wide-ranging mind, and the fact that he took on the job of recommending education reforms and came up with innovative proposals shows he has a flexible mind."
Mr Overholt said Mr Leung had a "quiet and scholarly sort of personality" with strong ideas.
Hong Kong General Chamber of Commerce director Eden Woon said Mr Leung's three-year tenure on the Executive Council would help equip him for his new role. The path to power1952 Born in Hong Kong on January 29 1970 Graduated from Ying Wa College 1970 Began three-year economics and statistics degree at HKU, engaged in student activism 1973 Joined Citibank as trainee manager 1982 Management development at Harvard Business School 1987 Named head of Citibank investment banking, North Asia 1987 Appointed to University Grants Committee 1990 Became director of Provisional Airport Authority 1992 Appointed to Central Policy Unit 1992 Became head of Citibank Hong Kong 1993 Became head of University Grants Committee 1993 Appointed to Foreign Exchange Advisory Committee 1993 Appointed to Education Commission 1995 Named head of Citibank's Asia-Pacific branch 1996 Joined Chase Manhattan 1997 Appointed Executive Councillor 1999 Harvard University advanced management course 2001 Financial Secretary-designate